STRS Annual Member Contribution - Setup - STRS Deductions
Set up the following deduction codes for STRS contributions on the Deduction Table page before creating the STRS Annual Member Contribution report:
After Tax plan
For after-tax plans, the deduction amount is the published rate for employee contributions, and the benefit amount is the published rate for employer contributions.
Example
Published Rates:
Employee Contribution = 9.0%
Employer Contribution = 14.0%
To set up this deduction code, enter these values in the following fields on the Deduction Table page:
Deduction Code field on the General tab = 100
Deduction Amount/Rate field on the Employee tab = 0.09
Benefit Amount field on the Employer tab = 0.14
Employee Paid Pickup plan
For employee-paid (or salary reduction) pickup plans, two codes are required. One code, which represents the employee contribution, will need a deduction amount equal to the published rate for employee contributions and a zero benefit amount. The other code, which represents the employer contribution, will have a zero deduction amount and a benefit rate equal to the published rate for employer contributions.
Example
Published Rates:
Employee Contribution = 9.0%
Employer Contribution = 14.0%
To set up the Employee Contribution deduction code, enter these values in the following fields on the Deduction Table page:
Deduction Code field on the General tab = 200
Deduction Amount/Rate field on the Employee tab = 0.09
Benefit Amount/Rate field on the Employer tab = 0.0
To set up the Employer Contribution deduction code, enter these values in the following fields on the Deduction Table page:
Deduction Code field on the General tab = 201
Deduction Amount/Rate field on the Employee tab = 0.0
Benefit Amount/Rate field on the Employer tab = 0.14
Straight Pickup plan
For straight pickup plans (not “pickup on pickup”), there are also two codes. One code, which represents employee contributions, will need a deduction amount equal to the ‘employee paid’ portion of the published employee contribution rate. The benefit amount will be equal to the ‘employer paid’ portion of the published employee contribution rate. The second code, representing the employer contribution, requires a deduction amount of zero and a benefit amount equal to the published employer contribution rate.
Example
Published Rates:
Employee Contribution = 6.0% (for entirely board plans, the employee-paid portion is 0.0.)
Employer Contribution = 14.0%
To set up the Employee Contribution deduction code, enter these values in the following fields on the Deduction Table page:
Deduction Code field on the General tab = 300
Deduction Amount/Rate field on the Employee tab = 0.06
Benefit Amount/Rate field on the Employer tab = 0.03
To set up the Employer Contribution deduction code, enter these values in the following fields on the Deduction Table page:
Deduction Code field on the General tab = 301
Deduction Amount/Rate field on the Employee tab = 0.0
Benefit Amount/Rate field on the Employer tab = 0.14
Pickup on Pickup plan
For pickup on pickup plans, there are two additional codes. One code, which represents the employee contribution, will need a deduction amount equal to the ‘employee paid’ portion of the published employee contribution rate and a benefit amount equal to the ‘employer paid’ portion, weighted to include pickup on pickup, of the published employee contribution. The second code, which represents the employer contribution, will need a deduction amount equal to the published employer contribution rate, weighted to include pickup on pickup. Use the formulas in the examples below to determine the weighted rates.
Example
Published Rates:
Employee Contribution = 6.0% (for entirely board plans, the employee-paid portion is 0.0.)
Employer Contribution = 14.0%
Variables:
a = Published Employee Rate
b = a – c
c = Employee Paid Portion
d = Published Employer Rate
To set up the Employee Contribution deduction code, enter these values in the following fields on the Deduction Table page:
Deduction Code field on the General tab = 400
Deduction Amount/Rate field on the Employee tab = c = 0.06
Benefit Amount/Rate field on the Employer tab = b * (1 + a) = .03 * (1 + .09) = .0327
To set up the Employer Contribution deduction code, enter these values in the following fields on the Deduction Table page:
Deduction Code field on the General tab = 401
Deduction Amount/Rate field on the Employee tab = 0.0
Benefit Amount/Rate field on the Employer tab = d * (1 + b) = .14 * (1 + .03) = .1442
Set up Retirement System deductions
After setting up the STRS deduction codes, you must add and configure them on the OH Retirement System Deductions page.